Nvidia tumbles; Abbott rises after stent approved

LOS ANGELES (MarketWatch) -- Nvidia Inc. shares plunged Wednesday evening after the graphics chipmaker cut its second-quarter outlook, and Abbott Laboratories shares rose after regulators approved the use of one of its medical devices.

Nvidia
NVDA, -1.78%
shares dropped 24% to $13.70, sliding immediately after its shares resumed action after a trading halt. The company said it now expects revenue between $875 million to $950 million. Analysts surveyed by FactSet currently expect sales of $1.1 billion. It also expects gross margin to come in lower than previously forecast, which was for an increase of about 1% from first-quarter gross margin of 44.9%.

The company also plans to take a $150 million to $200 million charge related to expenses stemming from "a weak die/packaging material" used in previous generation products for notebook systems. See full story.

The Nasdaq-100 After-Hours Indicator, which tracks the evening action of the index's leading stocks, reversed gains to fall 8 points, or 0.4%, to 1,808.11.

Shares of PC maker Dell Inc.
DELL
also lost earlier gains, and were last down 2.2%.

Abbott
ABT, +1.34%
shares rose 1.5% to $55.04 after the company said the Food and Drug Administration approved its Xience V drug-coated heart stent. Abbott said it will launch the Xience V immediately. Stents are small wire mesh tubes placed into diseased arteries to keep them open, with drug coatings to prevent tissue from reclogging the artery.

The stent is also available to Boston Scientific Corp.
BSX, +0.97%
under a distribution agreement and will be sold under the "Promus" brand. Boston Scientific shares edged up 0.5% to $12.47.

Ahead of the late session, the Nasdaq Composite Index
COMP, +0.50%
dropped 2.3% to 2,251.46 as crude-oil futures set yet another record, this time near $144 a barrel, and as General Motors Corp.
GM, +3.40%
shares tumbled 15% after being downgraded by Merrill Lynch to "underperform" from "buy."

Tech stocks posted gains during the session, with an advance in Yahoo Inc.
YHOO, +0.85%
shares after a Wall Street Journal report that Microsoft Corp. was seeking partners to help an effort to buy Yahoo's Web search business. See Tech Stocks.

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